Settlement agreements are covered by section 111A of the Employment Rights Act 1996 and may require you to keep the terms of the agreement confidential. They are a way to avoid costly and lengthy legal proceedings or litigation and can offer a worker financial compensation (including other benefits) in exchange for the absence of a right against an employer. Given the different conditions for “pre-termination negotiations”, it may be understandable that some employers have not considered “pre-dismissal negotiations” as an option or are cautious. However, if the employer conducts “pre-termination negotiations” in accordance with ACAS guidelines, the discussions could promote an amicable and timely agreement that would avoid a lengthy formal process and a considerable management burden. .